El Al Isreal Airlines (ELAL) Q4 2023 earnings summary

Executive summary

• FY2023 revenue reached $2.5bn and profit before tax was $125m, versus a $14m loss before tax in 2022; Q4 profit before tax was $40m.

• Operations shifted to emergency mode after the war began on October 7; more than 2m passengers traveled on nearly 11,000 flights since hostilities began.

Financial highlights

• Q4 revenue was $678m, up 21% YoY from $561m, driven by higher activity and seat supply.

• FY2023 EBITDAR was $556m, ~22% of revenue, versus $349m and ~18% in 2022; Q4 EBITDAR was $161m, ~24% of revenue, versus $102m and ~18%.

• Q4 operating expenses were $597m, ~88% of revenue, versus $517m, ~92% in Q4 2022; expense growth trailed revenue growth.

• Cash flow from current activity rose to $455.5m from $312.9m, reflecting improved business results.

Outlook and guidance

• Summer schedule plans include more than 50 weekly US flights, added Paris and London service, and full-year operation of the Tokyo route.

• Load factor increased from 84% in Q4 2023 to 93% since the start of 2024; the trend was continuing into Q1 and may support Q1 results.

• Flexible ticket cancellation with full credit vouchers, without fees, applies to flights through the end of April, including Passover.